A major geological discovery recently shook Pingjiang County in China’s Hunan Province. Geological experts from across the country unearthed a large gold deposit initially discovered 2,000 metres underground. After drilling to a depth of 3,000 metres, they extracted more than 300 tonnes of gold, with total reserves estimated at over 1,100 tonnes. This deposit, valued at around €78 billion, is the subject of much discussion.
Enormous economic and industrial potential
The deposit is all the more impressive as it contains more than 40 gold veins, with a concentration of 138 grams of gold per tonne of ore. This could well transform Hunan Province into a major player in the global gold market and strengthen its economic impact. In terms of economic implications, the creation of numerous jobs is expected in the mining, transport and refining sectors.
Furthermore, the techniques used during exploration, particularly exploration technologies, herald a possible revolution in the global mining industry.
A unique economic and geopolitical environment
This announcement comes as the price of gold reaches historic highs, trading at $2,800 per ounce. International tensions, whether trade wars, the conflict in Ukraine or disputes over Taiwan, are contributing to this rise in prices. At the same time, there has been an increase in gold reserves in central banks, particularly in Eastern European countries, which are seriously investing in this metal.
China already ranks first as a producer and consumer of gold, with annual production of more than 370 tonnes. It should be noted that in 2023, the Chinese central bank added 225 tonnes to its reserves, thereby consolidating its position on the world market.
International comparison and future of the industry
By way of comparison, global reserves are spread across countries such as Australia, whose soil is believed to contain 12,000 tonnes of gold, followed by Russia with 11,000 tonnes and South Africa with 5,000 tonnes. The South Deep mine in South Africa, for example, is currently ranked as the world’s second largest deposit with reserves estimated at 1,025 tonnes, but this position could be challenged if the Wangu deposit confirms its potential reserves.
Exploration around the Wangu gold field suggests that further major discoveries are likely. Of course, these activities will need to be carried out with care to minimise environmental challenges. This deposit therefore serves as a kind of case study in trying to find the right balance between industrial development and respect for nature.
